Wednesday, August 28, 2024 / by Dick Keenan
As we look ahead to 2025, it’s essential to understand what experts are predicting for the housing market. Whether you’re considering buying or selling a home next year, having a clear understanding of the projected trends can help you make well-informed decisions about your real estate plans.
Here’s a closer look at the latest forecasts for mortgage rates, home sales, and home prices in 2025.
Mortgage Rates Expected To Gradually Decline
Mortgage rates are a key factor in the housing market, influencing affordability for buyers and overall market activity. According to forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), the National Association of Realtors (NAR), and Wells Fargo, mortgage rates are anticipated to decrease slightly throughout 2025.
This expected decline in mortgage rates is largely attributed to the easing of inflation and a modest increase in unemployment rates—indicators of a strong but slowing economy. Many experts b. ...
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Wednesday, August 28, 2024 / by Dick Keenan
In the past few years, many people have found it challenging to buy a home due to affordability issues. While it's still tough out there, there are signs that things might be getting a bit easier, with potential for further improvement as the year progresses. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), puts it this way:
“Housing affordability is improving ever so modestly, but it is moving in the right direction.”
Let's take a closer look at the three key factors that influence home affordability: mortgage rates, home prices, and wages.
1. Mortgage Rates
Mortgage rates have been quite volatile this year, fluctuating between the mid-6% to low 7% range. However, there's some positive news. Data from Freddie Mac shows that since May, rates have generally been on a downward trend.
This improvement in mortgage rates is partly due to recent economic, employment, and inflation data. While we can expect some ongoing fluctuations, expe. ...
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Monday, August 19, 2024 / by Dick Keenan
If you’re considering buying or selling a home, mortgage rates are likely at the forefront of your thoughts. These rates play a crucial role in determining how much you’ll pay each month on your mortgage, so it’s important to factor them into your plans. Here’s what you need to know about the current mortgage rate landscape and how it affects your buying power.
What’s the Current Trend with Mortgage Rates?
Recently, mortgage rates have been on a downward trend, which is promising news for those looking to buy a home. However, it’s essential to remember that mortgage rates can be unpredictable. They are influenced by a variety of factors, including the state of the economy, the job market, inflation, and the Federal Reserve’s policies.
As Odeta Kushi, Deputy Chief Economist at First American, points out, “The ongoing deceleration in inflation, coupled with the Federal Reserve’s recent indication of potential rate cuts [in 20. ...
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Wednesday, August 7, 2024 / by Dick Keenan
Mortgage rates have been a major topic in the housing market due to their significant impact on affordability. If you're looking to buy a home, you've likely been waiting for rates to drop. Good news: the past few weeks have shown a promising decline in rates.
Mortgage Rates Trend Down in Recent Weeks
There's exciting news about mortgage rates. Following recent reports on the economy, inflation, unemployment rates, and comments from the Federal Reserve, mortgage rates have started to decrease. According to Freddie Mac, rates are now at their lowest level since February. Here's a visual representation of this downward trend:
You might be tempted to wait and see if rates will drop even further. However, it's important to keep things in perspective. The record-low rates from the pandemic are a thing of the past. If you're hoping for a 3% mortgage rate again, experts agree that’s unlikely. As Greg McBride, Chief Financial Analyst at Bankrate, explains:
"The hopes for lo. ...
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Wednesday, August 7, 2024 / by Dick Keenan
Homebuyers are beginning to reclaim some negotiating power in the current market. While it’s not quite a buyer’s market, this shift means buyers might have more room to make requests. Sellers should be prepared for this possibility and know their boundaries when it comes to negotiations.
Whether you're buying or selling, understanding potential negotiation points is crucial. Here’s a quick overview of what might come up during your transaction so you can be prepared.
What Can Be Negotiated?
Almost everything in a home purchase is open for negotiation. Here are some key areas, according to Kiplinger and LendingTree:
Sale Price
The most obvious point of negotiation is the sale price. With affordability being a concern, buyers don’t want to overpay. Sellers need to be realistic about their asking prices and may need to adjust if they’re not seeing offers.
Home Repairs
After an inspection, buyers can request that sellers make necessary r. ...
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